Download presentation

Presentation is loading. Please wait.

1
Thinking Mathematically Consumer Mathematics and Financial Management 8.2 Simple Interest

2
Calculating Simple Interest Interest =(principal)(rate)(time) I = Prt The rate, r, is expressed as a decimal when calculating simple interest. Exercise Set 8.2 #5 P = $5000, r = 8.5%, t = 9 months, find the simple interest.

3
Future Value Future value (A) – amount due at the end of a loan Present value (P) – the principal borrowed A = P(1 + rt) Exercise Set 8.2 #11, 15, 21 P = $26,000, r = 9.5%, t = 5 years, find the future value. P = $2000, A = $2150, t = 1 year, what is the interest rate? A = $6000, r = 8%, t = 2 years, what must the initial principal be?

4
Discounted Loan Interest is deducted up front the loan amount

5
Thinking Mathematically Consumer Mathematics and Financial Management 8.2 Simple Interest

Similar presentations

© 2024 SlidePlayer.com Inc.

All rights reserved.

To make this website work, we log user data and share it with processors. To use this website, you must agree to our Privacy Policy, including cookie policy.

Ads by Google